QBE chief Frank O’Halloran hasn’t held back in his criticism of the circumstances surrounding the HIH collapse, or of the blow such an event makes on the local industry’s image overseas.

And perhaps he has good reason. Mr O’Halloran said last week that HIH’s Australian corporate insurance operations, which it bought in January, have proved disappointing. The original estimate of $600 gross premium from the business has now been downgraded by $200 million, with QBE finding its tougher underwriting rules are leading to a lot of non-renewals.

Mr O’Halloran told the APRA conference in May that the HIH collapse has made Australia a “laughing stock” overseas. Last week he used a speech at the Securities Institute to point out that the HIH experience makes it harder for Australian insurers and reinsurers to do business overseas. “It’s is not as easy as it used to be,” he said. “Australia is tarred overseas.”

More surprising was Mr O’Halloran’s call for any potential industry director or senior officer to be “approved as a fit and proper person” before they are allowed to steer insurance companies. He mentioned no names, but said HIH directors and officers weren’t who he meant, and possibly left some of his industry counterparts a little puzzled, if not downright edgy.